


Ask the community...
While I understand the frustration, there are legitimate reasons for these delays. The IRS is operating under significant constraints with outdated technology systems and staffing shortages. According to the National Taxpayer Advocate's 2023 Annual Report to Congress, the IRS had a backlog of over 3.2 million unprocessed amended returns at one point. The term "referral" in IRS parlance (specifically a Form 911 TAS referral) does have a tracking mechanism, but the 30-day timeline is aspirational rather than guaranteed. Your best option is to request a specific referral to the Taxpayer Advocate Service (TAS) if you're experiencing financial hardship due to the delay.
I'm dealing with something similar - filed my amended return in March 2024 and it's been radio silence since then. The frustrating part is how the messaging keeps changing. First they say "16 weeks," then "no timeline," then you hear about these mysterious "referrals" that may or may not actually exist. What I've learned from this thread is that we're basically stuck in a broken system where outdated technology meets bureaucratic inefficiency. The suggestions about congressional representatives and the Taxpayer Advocate Service seem like the most legitimate routes if you're truly experiencing hardship. Has anyone here actually had success with TAS? I'm wondering if it's worth the effort or if it's just another layer of bureaucracy to navigate.
Your turbo tax may have actually known what it was doing when it prompted you to use those SLCSP amounts. Did they ask you specifically about your employment situation and whether you were offered coverage? I use HR Block and it asked me detailed questions about my job status changes and when I had access to employer coverage throughout the year. It then automatically adjusted my premium tax credit eligibility month by month.
TurboTax definitely asks about employer coverage availability but sometimes gets confused with mid-year changes. When I switched from full-time to contractor last year, it kept trying to make me ineligible for the entire year even though I lost my employer coverage in July.
TurboTax did ask about my employment situation and whether I was offered coverage, but I think I might have answered incorrectly. I answered that I wasn't eligible for employer coverage (thinking about the March timeframe when I couldn't enroll), but I didn't specify that I had originally declined it during open enrollment or that my status changed to part-time in May. I definitely need to be more precise with these questions when I file my amendment. From what everyone's saying, it sounds like I should only claim the premium tax credit for the months after I went part-time and truly lost access to employer coverage.
I went through something very similar when I changed from full-time to part-time status mid-year. The IRS does treat declining employer coverage during open enrollment as making you ineligible for premium tax credits, even if you can't enroll later when you need it. However, your part-time switch in May is the key here. When you became part-time and lost eligibility for employer coverage, that's a legitimate qualifying event that restores your eligibility for premium tax credits going forward. I'd recommend amending to claim credits only for May through December. Make sure to document the exact date your employer coverage eligibility ended due to the part-time change - this will be important if the IRS has any questions about your amendment. Also, double-check that your employer truly doesn't offer any coverage to part-time employees, as some companies have different rules or waiting periods. You'll want to be certain about this before filing the amendment.
Based on tracking responses in this community for exactly 47 days, roughly 65% of people who verify online see transcript updates within 14 days without calling. The remaining 35% needed to call for various reasons - identity verification not properly linking to their account, additional verification requirements, or system glitches. If it's been more than 15 business days since verification, calling is probably your best option. I know it's frustrating, but there's a light at the end of the tunnel for everyone eventually.
I verified online through ID.me on February 28th and my transcript updated on March 14th without needing to call - so about 10 business days. The waiting was nerve-wracking because I kept reading horror stories about people waiting months. What helped me was checking the transcript at the same time each day (Friday mornings around 6 AM) instead of obsessively refreshing throughout the day. One thing I noticed is that my Account Transcript updated first, then my Return Transcript showed up about 2 days later. If you're at the 10-day mark, I'd give it until day 15 before considering calling. The system really does work for most people, it's just agonizingly slow during tax season.
Has anyone successfully had penalties waived without hiring a tax pro? I'm in a similar situation with my photography LLC and got hit with $2,600 in penalties even though I filed closure paperwork in 2019. I've been unemployed for 7 months and really can't afford this or a tax professional.
Yes! I did it myself last year. The key is being super organized with your documentation. I created a simple timeline of everything I'd sent and received, made copies of EVERYTHING, and wrote a very straightforward letter explaining the situation without getting emotional or angry (even though I was furious!). I marked my envelope "PENALTY ABATEMENT REQUEST" and sent it certified mail. Took about 10 weeks but they eventually removed all the penalties. Just be persistent and keep copies of everything you send.
Thank you so much for sharing your experience. That gives me hope! Did you use any specific IRS forms for the abatement request or just write a letter? And did you call them at all during those 10 weeks or just wait to hear back?
This is exactly the kind of bureaucratic nightmare that makes dealing with the IRS so frustrating. You clearly did everything right - submitted proper closure documentation, followed up multiple times, and kept detailed records. The fact that they're now penalizing you for their own processing delays is completely unfair. I want to echo what others have said about filing Form 843 for penalty abatement. Your situation screams "reasonable cause" - you have documented proof of timely submission, multiple attempts to follow up, and the IRS's own letters acknowledging processing delays. Make sure to emphasize in your abatement request that the penalties resulted from IRS administrative delays, not any failure on your part to comply. Also, don't forget to mention your current unemployment situation when requesting abatement. The IRS has provisions for economic hardship considerations, and being unable to pay without severe financial distress is a valid factor they must consider. Your case has all the elements for a successful abatement - you just need to present them clearly and persistently. Keep fighting this. You shouldn't have to pay penalties for the IRS's own administrative failures.
Fatima Al-Mazrouei
ugh the irs is such a joke. good luck getting anyone on the phone these days š
0 coins
Connor Richards
I've been through this nightmare before! Here's what finally worked for me: Try calling the IRS Practitioner Priority Service line at 866-860-4259 early in the morning (around 7 AM). Even though it's technically for tax professionals, they sometimes help taxpayers with urgent transcript issues. Also, if you have a local Taxpayer Advocate Service office, they can be a lifesaver for situations like this. They're independent within the IRS and specifically help when normal channels aren't working. Don't give up - transcript errors are more common than you think and they do get resolved eventually!
0 coins
Matthew Sanchez
ā¢This is really helpful advice! I didn't know about the Practitioner Priority Service line - that's a great tip. The early morning calling strategy makes sense too since they're probably less busy then. Thanks for sharing what worked for you @Connor Richards, gives me hope that I can actually get this sorted out!
0 coins